TNM posts record profit as debt burden eases

Telekom Networks Malawi (TNM) has strengthened its financial position after more than doubling its annual profit, a development that could boost investor confidence and support the company’s future growth.

The company has recorded a major financial turnaround, with net profit after tax surging by 112 percent to MK21.27 billion in 2025, as the telecommunications company recovers from years of heavy debt and challenging operating conditions.

TNM’s revenue increased by 41 percent to MK222.90 billion, while its debt-to-equity ratio fell from 103 percent to 43 percent after the company raised MK30 billion through a share issue in May 2025, with the proceeds used to repay high-interest debt.

Presenting the 2025 Annual Report in Lilongwe on Wednesday, TNM Board Chairman Ted Sauti-Phiri said the performance reflected the company’s resilience, strategic execution and disciplined financial management, alongside continued investment in network infrastructure and customer experience.

The results come as TNM celebrates 30 years since becoming Malawi’s first mobile network operator. Sauti-Phiri said the company had, over the decades, become an important contributor to Malawi’s economic development through taxes, employment, infrastructure investment and the expansion of digital financial services.

Chief Executive Officer Michel Antoine Hebert said the turnaround followed a deliberate effort to rebuild the company by focusing on customers, long-term investment and stronger execution. TNM invested MK30.87 billion in 2025, expanded its network and launched 5G services in Lilongwe, while ending the year with about seven million GSM subscribers.

Mpamba was another major growth driver, with revenue rising by 77 percent to MK51.93 billion. The mobile-money platform now has more than 140,000 active agents, while TNM’s Ndikankhe overdraft service has attracted more than 2.5 million users.

Hebert said the growing adoption showed that customers were responding to services that addressed their everyday financial needs. “When you build products that genuinely help customers, adoption follows,” he said.

The improved financial position has also enabled TNM to return value to shareholders, with the company recommending a MK7.96 billion dividend for the year. Hebert said the debt restructuring had restored positive cash flows, giving the company greater capacity to continue investing in its network while rewarding shareholders.

The turnaround has been welcomed by shareholders. Frank Harawa, Secretary General of the Minority Shareholders Association of Listed Companies (MISALICO), said shareholders were “very happy” with TNM’s performance after years in which the company struggled to make profits. He said the reduction in debt showed that management had taken the company in the right direction, while urging continued attention to expenditure control and foreign-currency exposure.

Harawa also welcomed TNM’s move to strengthen its infrastructure through the acquisition of another company, saying the transaction could increase TNM’s assets while reducing its reliance on rented fibre infrastructure. He described this as the kind of development shareholders had been waiting to see.

TNM, however, continues to operate amid foreign-currency shortages, exchange-rate volatility, inflation and rising fuel costs. The company says its focus going forward will be on expanding network coverage and quality, growing its digital and mobile-money ecosystem, improving operational efficiency and increasing its customer base.

For a company whose debt-to-equity ratio once stood at 103 percent, bringing it down to 43 percent while delivering 112 percent profit growth represents a significant shift. As TNM enters its next 30 years, the challenge will now be to sustain that momentum and translate the financial recovery into continued value for shareholders and better services for millions of Malawians.